2023-12-27 12:54:47
Housing prices in the United States rose again in October for the ninth consecutive month, in this case by 0.6% compared to September, according to data from S&P CoreLogic Case-Shriller. This is the fastest annual rate at the moment with increases in 19 of the 20 cities, highlights Brian Luke, head of commodities, real assets and digital at S&P Dow Jones Indices.
Las rate hikes and mortgage costs have caused many homeowners to postpone possible moves while waiting for the situation to reverse. These homeowners prefer to maintain mortgages with cheaper costs, while interest rates were especially low.
This decision is causing less supply of properties for sale, since few decide to get rid of their current homes. Therefore, those who are determined to purchase a house must assume the highest prices of the few options for sale. Specifically, the index shows data from a period in which mortgage interest rates were close to 8%which left out a large part of the population interested in buying.
As to year-on-year data, the increase in October is 4.8%, compared to the 4% year-on-year increases that September marked. This represents a greater acceleration in the annual price increases, which have been especially notable in Detroitwhere they have risen a 8,1%.
In second place, San Diego has suffered an increase in 7,2%followed by NYwith a 7,1%. Portland It has become the only city of the 20 that has seen its prices fall compared to data from a year ago.
With the mortgage interest falling as much as 7%, the pressure on potential buyers could decrease in the coming months, especially if the Federal Reserve limits anti-inflation policies. Lower rates would ease pressure on homeowners who might consider putting their homes up for sale, helping to stabilize prices.
It should be noted that the month-on-month increase in October has become the smallest since June, which represents the third consecutive month in which the increases appear to slow down, according to data from the Redfin Corporation index.
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